This is a test post

This is a test testThis is a test testThis is a test testThis is a test testThis is a test testThis is a test testThis is a test testThis is a test testThis is a test testThis is a test test

source https://creditrepairtoday.com/this-is-a-test-post/

What Is FICO 10 Score And How Will It Affect You

What is FICO 10 score and why should you know about it. Learn from credit experts

What is FICO 10 Score? FICO 10 is the latest, more accurate, and strict version of the previous scoring models. If you are a credit cardholder or planning to calculate your score before applying for a loan, you should understand the latest model first. So, without further ado, let’s dive right into the Fico 10 scoring model and determine its impact on your credit score.

What Is FICO 10 Score Model?

• FICO updates its point model about every five years, as per Dave Shellenberger, Vice President of Product Management at Fico. They analyze and update their algorithms to predict risk accurately. The new credit rating model is calculated based on the user’s account balance over the past 24 months, which is kind of bad news for anyone with a monthly balance. 

These changes are expected to widen the gap between those with a good credit score (670 to 739) and those with a bad credit score (less than 580). FICO 10 comes with trending data that will help credit scoring companies even further while lending. 

How FICO 10 Models Affect Your Score?

• The new FICO credit rating, released in January 2020, made some surprising headlines warning that 40 million people could lose at least 20 credit score points. It’s scary if you think you’ll be one of them. However, it is unlikely that you will be hit soon, and even so, you have plenty of time to prepare.

It is also worth noting that 40 million users can experience the same rating rise. And 110 million will probably see a difference of fewer than 20 points. Here’s what you need to know about the latest FICO scores.

Use Trended Data to Provide More Accuracy

• The FICO 10 scoring model will continue to use five key factors for evaluation of credit score: payment history, overdue amount, credit history age, new loan portfolio, and new account. However, given this trend, the credit risk assessment will be more accurate. 

Trend data, also known as time-series data or reports, show how the loan has been processed over the past 24 months. This allows you to get a more detailed picture of the financial situation at the time.

More Strict Policy

• Under the new FICO 10 scoring model, consumers who miss a payment will have a more intense credit score dropping as compared to the previous one. The only way to improve their position is to pay on time. Otherwise, there is no alternate option in this model.

Good Scores with Bonus Cards 

• Consumers with a good credit rating are more likely to score higher with the new version. Anyone with a good credit rating can easily get bonuses like bonus cards. Again, these people have a higher credit rating of 650. 

You have to do your best to pay your bills on time, keep your credit balance low and pay your bills in full.

Counts Personal Loans

• In previous versions of FICO, you were authorized to take out personal loans without the fear of lowering your FICO score. Unfortunately, the new FICO 10 model will have a greater impact on personal loans as compared to previous ones. 

In most cases, personal loans are used to pay off high-interest credit card debt, so they have a fixed interest rate and a fixed monthly payment. However, paying off your loan and debt consolidation have the greatest impact on your credit rating.

Final Verdict

• Sometimes the financial pillars are also updated with credit ratings so you need to plan accordingly and be prepared for change. 

Now that you know what is FICO 10 score, If your credit rating is not up to par and you want to modify your credit rating, Credit Repair Today can help you recover your credit score. Credit Repair Today is an authorized credit improvement service that provides consultancy services all across the United States.

source https://creditrepairtoday.com/what-is-fico-10-score-how-will-it-affect-you/

What is a Credit Report and What Does it Include

Not sure what credit rating is? Learn what is a credit report through experts

For an average American, a good credit report plays a crucial role in their financial decisions. So what makes your credit report good or bad? What are some aspects of your payments and invoices that matter while calculating your credit points? 

Let’s discuss these queries in detail and figure out how they impact your credit scores.

What Is A Credit Report?

• A credit report is a record of your credit activity and expense. This includes the name and credit limit of the loan and the company that provided the loan, as well as the loan amount and payment history. 

You can think of it as your financial resume since it tells potential lenders the past and present of your financial health.

• The credit report helps lenders decide whether to approve your loan or not. The report also helps you determine the interest rate they will charge you. Employers, insurance companies, and rental property owners can also view your credit report.

What Does a Credit Report Include?

• Credit reports contain a variety of information about you and your account, inquiries, and public records. Each credit center and reporting information format is different. However, by default, all credit reports contain the same category of information. 

You can estimate your score by knowing the aspects included in the credit report. To make it easier for you to understand what your credit report contains, we have jotted down some of its major aspects. Regardless of the agency, you can find the following terminologies in any credit report. 

Personally Identifiable Information (PII)

• Your name, date of birth, address, employment information, social security number, etc, are included to help identify you. Your PII will not be used to calculate your FICO points but your credit report contains PII. This information is used when you apply for a new loan to cross-check your credit history.

Credit Account

• Your credit report contains all accounts you have opened. It shows what type of credit account such as, credit card, mortgage, car loan, etc. you have. Along with a few necessary details like the date of opening and closure of a particular account, the lent amount, credit limit, closing balance, and transactional history are also given.

This information is necessary for the FICO score calculation, so it’s important to have a good reputation for your account.

Credit Inquiry

• Your report contains a credit inquiry that contains two types of information: Soft inquiries and Hard inquiries. Soft inquiries don’t affect your score because they occur when you self review your score. But the hard inquiries have a major impact on your score. 

They occur when companies or individuals, like credit card companies or loan servicers review your credit report.

Archive and Public Collection

• Credit investigation agencies collect information from state and local courts, including bankruptcy information. Overdue debts sent for debt collection will also appear on your credit report.

There is no quick fix for credit recovery. Even if your credit report includes unsorted debt, this is not the end of the world. You can still get your loan based on other included factors that are on point.

Final Thoughts

• Credit reports can vary from one model to another but the composition is pretty much the same across all scoring models. Having a good credit report is essential for good financial status and if it isn’t, you might face some trouble getting your loan approved.

If your Credit Report is not looking great and you need professional help improving it, Credit Repair Today can help you amp up your credit score. Credit Repair Today is an accredited credit repair consultant.

source https://creditrepairtoday.com/what-is-a-credit-report-what-does-it-include/

How is Credit Score Determined?

Just how is credit score determined in the U.S? Here’s what you need to know

A good credit score is very important in any financial decision. Payments and invoices contain many important aspects that must be considered when calculating your score. Let’s discuss these aspects and how they affect your credit score.

How Does Credit Score Work?

• Your credit score can have a big impact on your investments and purchases. It plays an important role in the lender’s decision to offer you a loan. For example, people with a credit score below 640 are generally considered subprime lenders. 

Lenders charge interest on subprime mortgages at higher rates than normal mortgages to compensate for greater risk.

Conversely, a credit score of 700 or higher is generally considered good and less risky. This enables the borrower to receive a lower interest rate and pay less interest over the life of the loan. Results above 800 are considered outstanding. Each lender defines its own credit score range, but the average FICO score range is:

• Excellent: 800 ~ 850
• V. Good: 740 ~ 799
• Good: 670 ~ 739
• Satisfactory: 580 to 669
• Bad: 300 ~ 579

How to Determine a Credit Score?

• Some of your billing histories are more important than others. When calculating your credit score, different parts of your credit history carry different weights. Credit scores are segmented and determined through five categories of information provided in your credit report.

The following is a general analysis of the 5 factors that credit score models consider.

Payment History

• Lenders are most concerned about paying their bills on time. They evaluate your credit by analyzing how you have paid your bills in the past. Delinquency, depreciation, debt collection, and bankruptcy affect all parts of your credit rating payment history. The better your repayment history (e.g. loan repayment or credit card bill), the higher your credit score.

Credit Utilization Rate (CUR)

• The Credit Utilization Rate is the percentage of the credit card limit that is used each month. This relationship has a huge impact on your credit rating. The more credit cards you use, the higher the CUR and the stronger the effect of lowering your score in proportion to the value of this parameter.

Ideally, your financial planner says you should keep your CUR below 30% and pay your credit card fees in full on time.

Credit Period

• The credit period has a decent effect on your score. The older the loan or credit card, the higher the score is proportional to the parameter value. This shows that you have been using the loan responsibly for a long time and have been paying installments promptly.

Length of Credit History

The length of your credit history, depending on how long each account was opened and your credit balance, represents different types of accounts, including mortgages, credit cards, car loans, and more. 

The score is low, but you shouldn’t use multiple accounts at once to improve.

Number of Credit Accounts

• Credit score also depends on the composition of the loan portfolio, that is, the percentage of guaranteed and unsecured loans in the loan portfolio. 

Having another type of credit (guaranteed or unsecured) can lead to a higher credit rating.

Final Verdict

• Determining your credit score will help you predict how your lender will consider applying for a credit card or loan. If you think your credit rating is lower than what you want, you can improve your score before taking serious financial action.

Try recovering your credit score with Credit Repair Today. Credit Repair Today is an authorized credit repair consultancy that provides credit score assistance across the United States.

You can also visit our office in Palm Coast, Florida. We can talk face to face to help improve your credit score starting today.

source https://creditrepairtoday.com/how-is-credit-score-determined/

#creditscore What Is a Good Credit Score? Why It is Important?

Watch video on YouTube here: https://youtu.be/qo-Dhk2bLgo

5 Do’s and Don’ts of Maintaining Good Credit

Here’s everything you need to do to ensure maintaining a good credit

A credit line helps you fund major purchases by making smaller payments over time. These major purchases include buying a house, a car, or financing your education. To qualify for such a service, agencies and banks evaluate a person’s fiscal wellbeing by measuring their credit score. 

A credit score depends on several factors such as employment status, payment history, and debt-income ratio. A good credit score will enable you to qualify for more loans with a minimum interest rate.

We have compiled the top 5 Do’s and Don’ts of maintaining a good credit score. This will help you take benefit of better credit and loan programs with lower fees and favorable terms. 

Do Verify Statements

• It is crucial to verify your loan and credit statements regularly. This can be done by opting for an email report, sent out every month. This way you can be sure never to have a missed statement. The statement will also list down your recurring and annual charges. If there are any confusions, you must consult the credit agency. 

If you notice any errors, you must get them corrected as soon as possible. This is because payment history accounts for 35% of your credit score. 

Do Keep Credit Utilization Ratio in Check

• Consider that your credit card has a limit of 3,000US$ and you currently have a balance of US $ 1,500. This means your credit utilization ratio is 50%. This ratio accounts for almost 30% of your overall credit score. 

Therefore, it is in your best interest to keep the ratio well below 30%. If possible, you should clear out any outstanding payments. This will improve your credit score quickly. 

Do Not Try to Spread Out Payments

• Do not open multiple accounts and spread your balance over them. While this may seem like a smart move, it can turn into quite a hassle. Sometimes, people end up overusing their limits because of a simple calculation error. Other times, they might forget about payment because everything is spread out. 

A better alternative is to opt for a Balance Transfer Card. This card works by consolidating all your payments into one single card. Thus, ensuring that you never miss a payment and your credit score remains high.  

Do Not Close Old Credit Accounts

• It is a common practice for people to close their old credit accounts. However, this can have a detrimental effect on your credit score. Good credit history affects as much as 15% of your overall score. 

Therefore, keeping an old credit account open will positively impact your score by keeping your credit to debt ratio high.

Do Not Ignore Credit Score Report

• There are several agencies and consultancies that offer a free credit score report. If you want to maintain a good credit score, you must consult these agencies and get your annual score report. This will help you understand your current position and let you figure out if you need to take corrective action to improve your score. 

If your score is lower than your expectations, you can review your statements for any errors. Fixing them on time will save you from facing denial of credit line in the future. 

• One of the best things you can do for yourself is to hire a credit repair company. The credit repair company will offer valuable advice based on their analysis of your credit rating. Even if your current score is good, they will suggest a plan of action to keep it that way. 

A good credit repair company such as Credit Repair Today will offer you a free credit score report, comprehensive plans, and a money-back guarantee. You can use their services to maintain and to improve your credit score. 

source https://creditrepairtoday.com/5-dos-and-donts-of-maintaining-a-good-credit/

5 Credit Score Myths Debunked

Stop believing these credit score myths everyone seems to be telling these days

Many credit card holders have common misconceptions about their scores and aren’t aware of how credit scoring works. Because these numbers are quite important, everyone should understand exactly how credit scores work. Overcoming these myths would help you in maintaining and improving your credit score.

Why is Your Credit Score Important?

• How you use your credit card has a huge impact on your credit score. As a borrower, your credit reports and credit scores help a financial institution determine whether or not you can repay your debts on time. Therefore, the creditworthiness of an individual or property helps in assessing the risk they pose to the creditor.

Your credit score has a huge impact on your ability to buy a home, get a loan, or even if you plan on buying high-quality appliances. FICO score above 670 is considered a good score.

Common Credit Score Myths and Misconceptions

• It’s important to ensure your financial liberty to pay your bills and repay your debt. But it’s even more important to fully understand your credit score and credit report, especially if you’re a borrower.

But unfortunately, many credit score myths can cloud your judgment. Let’s take a look at some of them. 

Income Impacts Credit Score

People think that the more money they make, the higher their credit score gets. But the fact is, income doesn’t directly affect your credit score. FICO Points are calculated using various factors which are categorized as follows:

• • Payment history (35%)
  • The debt amount (30%)
  • Credit history period (15%)
  • New loans (10%)
  • Loan combinations (10%).

Your income is not a determining factor for your credit report. Income is only important for credit card and loan applications. 

Scoring Remains Same in Every Model

• Most people think that their scoring remains the same in all models but in reality, it’s not true. There are several scoring models to calculate your credit score and the results can vary depending on the calculation model used.

Some credit scanners scan your credit report at set times and take snapshots of what your credit report appears at that time. One of the models commonly used by lenders is VantageScore 4.0. It uses credit data that has been recently obtained from three national credit companies (CRCs), which differs from other models. 

Debit Cards Can Help Credit Scores

• According to a survey, 42% of people think debit cards can create a credit history or increase credit value. But in reality Debit cards don’t affect your credit history, nor your credit score. Using a debit card is essentially like using cash. It doesn’t impact your score even if you choose “credits” when placing your orders. 

Choosing a credit option for your debit card only decides how the seller processes the card and what fees you pay.

A Bad Credit Score Lasts Forever

• Bad credit does not last forever, your credit score improves over time. It only lasts permanently if you continue to make choices that compromise your credit score, such as late payments, lack of credit card,  issuing payment invoices, etc.

Closing Unused Credit Card Improves Score

Some borrowers try closing their unused card thinking it would magically improve their scores. But that’s not how it works. If you don’t use a card, you can earn a huge amount of unused credit. So instead of closing the card, keep your account active and try to keep it in a safe place, since it is a credit grade asset. 

Final Verdict

• The popularity of such myths makes it a little tricky to understand your credit scores in their true spirits. By overcoming such misconceptions, you can improve your credit reports which play a prominent role in getting your loans approved.

If you want to fix your credit score, then stop believing in these credit score myths and start looking for a reliable and experienced credit repair company. Try Credit Repair Today. Credit Repair Today is a licensed credit repair company that provides credit assistance all across the United States.

source https://creditrepairtoday.com/5-credit-score-myths-debunked/